I would like to know how easy it is to get from small town to small town in Southern Bavaria. Are there local buses that go between these towns or would you need a car. For example, if we went to Berchtesgaden is there a quick direct bus to Ramsau or would it be more involved than that? Or if you are in Garmisch can you get by bus to Oberammergau directly or do you have to go up to say, Murnau. I would like for us to visit small towns but don't want to spend more time on the train/bus traveling from point A to point B because we have to go to hub and then continue on, so we have turned a 25 min journey into an hour and a half. I understand that this is a possibility, I am just curious if it is really quite easy to get around or to hop from town to town can really eat up a lot of time.
A number of travelers use the train/bus system quite efficiently to see the south of Germany, but if you want to get a car (and I do for this area) then it makes the travel more spontaneous and allows you the freedom to hop from town to town on your schedule. It is a totally different kind of trip but if you are looking to explore and enjoy a road trip, Germany is a great place to do it. Beautiful freeways and good signage make driving here very easy.
If Germany is not the place to use public transportation, nowhere is. Germany has the most extensive rail network in Europe (6th in the world), the 2nd most dense, behind only Switzerland, the most dense, by 1%. Fares in Germany are some of the lowest. Complementing Germany rail network is an extensive network of regional buses. As you can see on this map, the area south of Munich is well served by bus lines. Bus line 9606 runs directly (no change) from Garmisch-Partenkirchen to Oberammergau in ½ hr to 45 min. That bus goes on from there to Füssen. Another bus will take you from Oberammergau to Linderhof in about 25 min. In Berchtesgaden, bus 846 will take you from the Hbf to Ramsau in about 15 min. A Bayern-Ticket gives you access to all the trains and most regional buses in Bavaria for a day for €29 for up to five people. RVO sells a Tagesticket (day ticket, hop on/off) for their entire German network for €9/p. You can find schedules for trains and buses on the German Rail (Bahn) website.